9. Project Cycle Management and Logical Framework: The case of the EC. By Claudio Foliti

Transcription

1 9. Project Cycle Management and Logical Framework: The case of the EC By Claudio Foliti

2 What is a project? (EC, Aid Delivery Methods, 2004) Definition: A project is a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget. A project should also have: 1. Clearly identified stakeholders, including the primary target group and the final beneficiaries; 2. Clearly defined coordination, management and financing arrangements; 3. A monitoring and evaluation system (to support performance management); 4. An appropriate level of financial and economic analysis, which indicates that the project s benefits will exceed its costs. 2

3 Relationship between projects, programmes and policies A well-formulated project should derive from an appropriate balance between the EC s development policy priorities and the partner s development priorities Within the scope of these policy priorities, the executive arms of government or non-governmental agencies formulate the broad areas of work required to implement policy decisions. These broad areas of work are often called programmes, which, like projects, may vary significantly in scope and scale. 3

4 Defining a programme The definition of what a programme is depends essentially on how the responsible authority(ies) choose to define it. For example, a programme may: a. cover a whole sector (e.g. Health Sector Programme); b. focus on one part of the sector (e.g. a Primary Health Care Programme); c. be a package of projects with a common focus/theme (e.g. ASEAN-EU university links programme); or d. define what is essentially just a large project with a number of different components. 4

5 5

6 Project Cycle Management (PCM) Project Cycle Management is a term used to describe the management activities and decision-making procedures used during the life-cycle of a project (including key tasks, roles and responsibilities, key documents and decision options). 6

7 3 principles 1. Decision making criteria and procedures are defined at each phase (including key information requirements and quality assessment criteria); 2. The phases in the cycle are progressive each phase should be completed for the next to be tackled with success; and 3. New programming and project identification draws on the results of monitoring and evaluation as part of a structured process of feedback and institutional learning. The duration and importance of each phase of the cycle will vary for different projects, depending on their scale and scope and on the specific operating modalities under which they are set up. 7

8 3 quality attributes Relevant the project meets demonstrated and high priority needs Feasible the project is well designed and will provide sustainable benefits to target groups Effective and well managed the project is delivering the anticipated benefits and is being well managed 8

9 Requirements of PCM 1. PCM requires the active participation of key stakeholders and aims to promote local ownership; 2. uses the Logical Framework Approach (as well as other tools) to support a number of key assessments/analyses (including stakeholders, problems, objectives and strategies); 3. incorporates key quality assessment criteria into each stage of the project cycle; and 4. requires the production of good-quality key document(s) in each phase (with commonly understood concepts and definitions), to support well-informed decision-making. 9

10 The Quality Frame: attributes and criteria 10

11 1. Programming a. During the Programming phase, the situation at national and sector level is analysed to identify problems, constraints and opportunities which cooperation could address. b. This involves a review of socio-economic indicators, and of national and donor priorities. c. The purpose is to identify the main objectives and sector priorities for co-operation, and thus to provide a relevant and feasible programming framework within which programmes and projects can be identified and prepared. d. For each of these priorities, strategies that take account of the lessons of past experience are formulated. 11

12 2. Identification The purpose of the identification stage is to: a. identify project ideas that are consistent with partner and EC development priorities; b. assess the relevance and likely feasibility of these project ideas; c. under the Programme approach, prepare a Financing Proposal, or an Identification Fiche for individual projects d. And prepare a financing decision for a Programme of projects, or determine the scope of further work required during the formulation stage for individual projects. 12

13 3. Formulation The purpose of the Formulation stage is to: a. Confirm the relevance and feasibility of the project idea as proposed in the Identification Fiche or Project Fiche; b. Prepare a detailed project design, including the management and coordination arrangements, financing plan, cost-benefit analysis, risk management, monitoring, evaluation and audit arrangements; and c. Prepare a Financing Proposal (for individual projects) and a financing decision. 13

14 4. Formulation The purpose of the Formulation stage is to: a. Confirm the relevance and feasibility of the project idea as proposed in the Identification Fiche or Project Fiche; b. Prepare a detailed project design, including the management and coordination arrangements, financing plan, cost-benefit analysis, risk management, monitoring, evaluation and audit arrangements; and c. Prepare a Financing Proposal (for individual projects) and a financing decision. 14

15 15

16 16

17 5. Implementation The purpose of the implementation stage is to: a. Deliver the results, achieve the purpose(s) and contribute effectively to the overall objective of the project; b. Manage the available resources efficiently; and c. Monitor and report on progress. The implementation stage of the project cycle is in many ways the most critical, as it is during this stage that planned benefits are delivered. All other stages in the cycle are therefore essentially supportive of this implementation stage. 17

18 Implementation: three main periods 18

19 Monitoring and reporting 1. Monitoring and regular review (internal or external) Implementation as a continuous learning process 2. Planning and re-planning 3. Reporting To inform stakeholders To record what has been achieved and to facilitate future reviews or evaluations To document any changes in forward plans To promote transparency and accountability 19

20 20

21 5a. Evaluation Make an assessment, as systematic and objective as possible, of an ongoing or completed project, programme or policy, its design, implementation and results. The aim is to determine the relevance and fulfillment of objectives, developmental efficiency, effectiveness, impact and sustainability. An evaluation should provide information that is credible and useful, enabling the incorporation of lessons learned into the decision-making process of both recipients and donors. 21

22 Principles underpinning the approach to evaluation 1. Impartiality and independence of the evaluation process from the programming and implementation functions; 2. Credibility of the evaluation, through use of appropriately skilled and independent experts and the transparency of the evaluation process, including wide dissemination of results; 3. Participation of stakeholders in the evaluation process, to ensure different perspectives and views are taken into account; and 4. Usefulness of the evaluation findings and recommendations, through timely presentation of relevant, clear and concise information to decision makers. 22

23 23

24 End of the evaluation: what can we do? a. continue project implementation as planned, to reorient/restructure the project, or, in the worst case, to stop the project (mid-term evaluation); b. modify the design of future projects or programmes in light of lessons learned (ex-post evaluation); or c. to modify policies, co-operation strategies, and subsequent programming or identification exercises in - the case of sector, thematic or cross-sector evaluations. 24

25 5b. Audit The purpose of an audit is to: Assess an activity/subject that is the responsibility of another party (e.g. EuropeAID) against identified suitable criteria, and express a conclusion (i.e. opinion) that provides the intended user with a level of assurance about the activity/subject being audited. 25

26 26

27 27

28 28

29 29

30 The Logical Framework

31 Why? The Logical Framework Approach (LFA) was developed in the late 1960 s to assist the US Agency of International Development to improve its project planning and evaluation system. It was designed to address three basic concerns, namely that: 1. Planning was too vague, without clearly defined objectives that could be used to monitor and evaluate the success (or failure) of a project; 2. Management responsibilities were unclear; and 3. Evaluation was often an adversarial process, because there was no common agreement as to what the project was really trying to achieve. 31

32 LFA: an aid to thinking The LFA is an analytical process and set of tools used to support project planning and management. It provides a set of interlocking concepts which are used as part of an iterative process to aid structured and systematic analysis of a project or programme idea. LFA is an analytical process Logical Framework Matrix (LFM) also provides a documented product of the analytical process 32

33 The structure of the LFM (or Logframe) The Logical Framework Matrix (or more briefly the Logframe) consists of a matrix with four columns and four (or more) rows, which summarise the key elements of a project plan, namely: 1. The project s hierarchy of objectives (Project Description or Intervention Logic); 2. The key external factors critical to the project s success (Assumptions); and 3. How the project s achievements will be monitored and evaluated (Indicators and Sources of Verification). The Logframe also provides the basis on which resource requirements (inputs) and costs (budget) are determined 33

34 34

35 The structure of the LFM (or Logframe) It is used during the identification stage of PCM to help analyse the existing situation, investigate the relevance of the proposed project and identify potential objectives and strategies; During the formulation stage, the LFA supports the preparation of an appropriate project plan with clear objectives, measurable results, a risk management strategy and defined levels of management responsibility; During project/programme implementation, to support contracting, operational work planning and monitoring; and During the evaluation and audit stage, to provide a summary record of what was planned (objectives, indicators and key assumptions), and thus provides a basis for performance and impact assessment. 35

36 Strengths and problems of the LFA 36

37 37

38 The Logical Framework The analysis phase

39 First stage of the LFA: Analysis There are four main elements of the Analysis Stage, namely: 1. Stakeholder Analysis, including preliminary institutional capacity assessment, gender analysis and needs of other vulnerable groups such as the disabled (profile of the main players ); 2. Problem Analysis (profile of the main problems including cause and effect relationships); 3. Analysis of Objectives (image of an improved situation in the future); and 4. Analysis of Strategies (comparison of different options to address a given situation). 39

40 Terminology 1. Stakeholders: Individuals or institutions that may directly or indirectly, positively or negatively affect or be affected by a project or programme. 2. Beneficiaries: Are those who benefit in whatever way from the implementation of the project. Distinction may be made between: Target group(s): The group/entity who will be directly positively affected by the project at the Project Purpose level. This may include the staff from partner organisations; Final beneficiaries: Those who benefit from theproject in the long term at the level of thesociety or sector at large, e.g. children due toincreased spending on health and education, consumers due to improved agricultural production and marketing. 3. Project partners: Those who implement the projects in-country (who are also stakeholders, and may be a target group ). 40

41 1. Stakeholder analysis: 5 steps 1. Identify the general development problem or opportunity being addressed / considered; 2. Identify all those groups who have a significant interest in the (potential) project; 3. Investigate their respective roles, different interests, relative power and capacity to participate (strengths and weaknesses); 4. Identify the extent of cooperation or conflict in the relationships between stakeholders; and 5. Interpret the findings of the analysis and incorporate relevant information into project design to help ensure that resources are appropriately targeted to meet distributional/equity objectives and the needs of priority groups, management and coordination arrangements are appropriate to promote stakeholder ownership and participation; conflicts of stakeholder interest are recognized and explicitly addressed in project design. 41

42 Stakeholder analysis matrix 42

43 Stakeholder analysis and SWOT Analysis 43

44 Stakeholder analysis and Venn Diagram (relations) 44

45 Stakeholder analysis and Spider diagram (organizational capacity) 45

46 2. Problems analysis: cause-effect relationships 46

47 3. Objective analysis: means/ends hierarchies 47

48 4. Strategy analysis: key criteria Expected contribution to key policy Benefits to target groups Complementarity with other ongoing or planned programmes or projects Capital and operating cost implications, and local ability to meet recurrent costs Financial and economic cost-benefit Contribution to institutional capacity building Technical feasibility Environmental impact Using these criteria will help to determine what should/can be included within the scope of the project, and what should/cannot be included. 48

49 An example 49

50 The Logical Framework The planning phase

51 51

52 52

53 First column: Intervention logic (vertical logic) 53

54 Fourth column: assumptions Assumptions are external factors that have the potential to influence (or even determine) the success of a project, but lie outside the direct control of project managers. This works as follows: a. once the Activities have been carried out, and if the Assumptions at this level hold true, results will be achieved; b. once these Results and the Assumptions at this level are fulfilled, the Project Purpose will be achieved; and c. once the Purpose has been achieved and the Assumptions at this level are fulfilled, contribution to the achievement of the Overall Objectives will have been made by the project. 54

55 55

56 56

57 Second and third column: Indicators and Source of Verification (horizontal logic) Once the project description and assumptions have been drafted (columns 1 and 4 of the matrix), the next task is to identify indicators that might be used to measure and report on the achievement of objectives (column 2) and the sources of that sources information (column 3). Objectively Verifiable Indicators (OVIs) describe the project s objectives in operationally measurable terms (quantity, quality, time or QQT). OVIs are usually determined during the FORMULATION phase and sometimes during the IDENTIFICATION stage 57

58 A good OVI is SMART Specific to the objective it is supposed to measure Measurable (either quantitatively or qualitatively) Available at an acceptable cost Relevant to the information needs of managers Time-bound so we know when we can expect the objective/target to be achieved 58

59 Other characteristics of an OVI Independence: Indicators should be independent of each other, each one relating to only one objective in the Intervention Logic It is often necessary to establish more than one indicator for each objective statement (quantitative + qualitative) The meaning of an Objectively Verifiable indicator is that the information collected should be the same if collected by different people 59

60 60

61 Source of Verification (SOV) The source of verification should be considered and specified at the same time as the formulation of indicators. This will help to test whether or not the Indicators can be realistically measured at the expense of a reasonable amount of time, money and effort. The SOV should specify: How the information should be collected (e.g from administrative records, special studies, sample surveys, observation, etc ) and/or the available documented source (e.g. progress reports, project accounts, official statistics, engineering completion certificates etc.) Who should collect/provide the information (e.g. field extension workers, contracted survey teams, the district health office, the project management team) When/how regularly it should be provided. (e.g. monthly, quarterly, annually, etc.) 61

62 62

63 The Logical Framework Completing the draft

64 64

65 65

66 66

67 67